27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Speaking on Bloomberg Markets, Alon Rosin suggested an options strategy in Yelp Inc (NYSE:YELP) ahead of earnings.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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The company is going to report earnings on Thursday and Rosin recommended a put backspread strategy for investors with a long position in the name. For a position of 500,000 shares, he would sell 2,500 contracts of the June 48 put and buy 7,500 contracts of the June 45 put for a total debit of $1 or $500,000.
If the stock gets crushed, the investors are going to be stopped out of the 500,000 shares long position through the extra 5,000 puts they own, explained Rosin.